Rss is just following and getting others people update ........
Also if you out your RSS widget /plugins in your blog/site
when others people subscribe , they will got an update when you post new content

RSS feeds grab content from other blogs or feeds and place them on your blog. In this process, you may not get full articles as some come with bits and pieces of articles. In this case, if you want full articles from feed you can use yahoo pipeline.

There are guides all over here but I recommend buying Kingbred's Autoblog Book for the basics on RSS feeds and way more.

Edit: I see someone already answered the question. Btw, use FeedWordpress + wp-o-matic.

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